Working hours vs. productivity

Productivity varies wildly by country, with those in less productive nations having to work harder and longer to achieve the same level of economic output as the most productive. It's worth remembering productivity isn't an abstract concept - higher productivity means higher wages.

At the most basic level productivity measures such things as the number of bricks laid by a bricklayer, or fish caught by a fisherman. On a grander scale it measures the total economic output for the amount of labour input. Productivity growth in a country means that the national income increases while working hours decrease. 

The scatterplot above shows labor productivity measured as GDP per hour of work versus annual working hours hours per worker. A purchasing power parity adjustment has been made to the GDP figures to allow for comparison between countries.

As the chart shows, higher labor productivity is associated with fewer working hours. As countries increase their productivity, workers are required to expend less effort in order to achieve the same economic output as less productive countries. 

The chart highlights a few notable exceptions, such as Singapore and the United States, where despite high labor productivity rates, working hours remain relatively high compared with counterpart counties of similar productivity levels.